What Credit Really Measures

Credit scores are designed to show lenders how reliably you manage borrowed money. They don’t measure income or wealth — they reflect behaviour.
Credit scores are influenced by:

• Payment history

• Credit usage

• Length of credit history

• Types of credit used

• New credit applications
  Understanding these factors helps you build credit deliberately instead of by accident.

Start With One Simple Credit Account

If you’re new to credit, you don’t need multiple accounts. One well-managed credit card or small loan is enough to begin building a history. Look for:

• Low fees

• Manageable credit limits

• Clear repayment terms
  The goal is consistency, not variety.

Always Pay On Time

Payment history is the most important factor in your credit score. One missed payment can hurt your score for months.
Simple habits help prevent this:

• Set up automatic payment

• Schedule reminders

• Pay at least the minimum due every month
  On-time payments show reliability and build trust with lenders.

Keep Your Credit Usage Low

Credit usage refers to how much of your available credit you’re using. Using too much of your limit — even if you pay it off — can lower your score.
A good rule is to use less than 30% of your available credit. Lower usage signals control and responsibility.

Don’t Apply for Too Much Credit at Once

Each credit application creates a temporary dip in your score. Applying for multiple cards or loans in a short period can make you appear financially unstable. Apply only when necessary and space out applications.

Keep Old Accounts Open

The length of your credit history matters. Closing old accounts can shorten your history and lower your score. If an old account has no fees, keeping it open — even unused — can benefit your credit profile.

Check Your Credit Report Regularly

Mistakes happen more often than people expect. Reviewing your credit report helps you catch errors early.
Look for:

• Accounts you don’t recognis

• Incorrect balances

• Late payments that weren’t late
  Disputing errors can improve your score and protect your financial reputation.

Use Credit as a Tool, Not a Safety Net

Credit should support your financial goals, not replace saving or budgeting. Relying on credit for everyday expenses can lead to debt cycles that damage both your finances and your score.

Be Patient With the Process

Building strong credit takes time. There are no shortcuts. The good news is that steady habits — paying on time, using credit responsibly, and avoiding unnecessary debt — work consistently.